When does the Power of Attorney authority end?

When does the Power of Attorney authority end?

A power of attorney (POA) is a legal agreement that grants an agent authority to act on behalf of a principal. The scope of the actions allowed by the POA can be broad or limited, which is written out in the document.

A general POA gives broad powers to the agent, while a limited POA grants specific powers to act on behalf of the principal, such as limiting types of accounts and time frames.

Durable POA's have authority to act in the agency capacity even when a principal becomes incapacitated.

A Springing POA grants agency authority only at the inception of particular incapacitation of the principal, as spelled out in the document.

There are other types of power of attorney relationships, and most states require a POA agreement to be notarized to be enforceable. Common situations where you might see a POA put in place is relating to significant others or children having POA authority for their parents, although it should really just be anyone you fully trust. These documents can be very important to have, and generally when you realize you need one in place it can be too late to draw it up. Be sure to plan ahead.

When does a POA power abate? At death. Once the principal has died, the power of attorney powers are no longer granted to the agent, and estate law will take precedent. #powerofattorney #poa #estateplanning

Consult a financial advisor for more best practices.

-Your friends at Red Oak Financial Group